Tech

Microsoft has created a series of ads over the last couple of years specifically targeting Google services such as Gmail and Google Drive. They're well-made snippets that highlight the weaknesses of Google's ad-supported, cloud-first approach to productivity, which stands in contrast to Microsoft's service-driven app model, exemplified by the popular Microsoft Office.

The fact that Microsoft is making these ads at all, though, shows just how nervous the company is about Google encroaching on its territory. Which appears to be exactly what's happening, according to a report from The New York Times.

While Google Apps have been the go-to productivity suite for smaller companies, they're now spreading to the enterprise with big names such as the U.S. Interior Department and Hoffmann-La Roche, a Swiss pharmaceutical company, signing on. In addition, for federal government contracts that both Google and Microsoft competed for in 2012, Google won 23 to Microsoft's 10, the report says.

The big factor at play is price. Google charges just $50 a year for each person using Google Apps (disclosure: Mashable uses it) whereas Microsoft's alternative, Office 365, starts at $72. That number tends to be higher in many use cases, however, particularly if you want local apps that aren't strictly tied to the cloud. For a business to "subscribe" to Word, Excel, PowerPoint et al., it costs $150 a year for each employee.

The price of Google Apps hasn't gone up in years, although Google recently discontinued offering a limited version for free.

Although Microsoft has enterprise-focused services such as Lync, Sharepoint and now Yammer, Google has found a reliable model in offering a best-in-class consumer service for free (either as a loss leader or supported by ads) and watching businesses adopt it for their uses.

A good example is Google Hangouts. The multi-person video chats, which are tied to Google+, have caught on as an easy way to video conference and even host panels (now that users can "broadcast" a hangout). So far Google doesn't charge for Hangouts, although the company has recently re-positioned the pricing of products such as Google Drive to serve both everyday users and business.

Another factor: Subscribing to Microsoft Office doesn't include web-based email. Although Microsoft does offer email storage with its Outlook.com service, that isn't tied directly to the Outlook app in Microsoft Office, as they are two entirely different pieces of software, with different back ends.

Which do you use for your business: Google Apps or Microsoft Office? What would compel you to switch? Share your thoughts in the comments.

Image courtesy of Microsoft

BONUS: How to Fix Google Apps

6 Small Fixes We'd Like to See in Google Apps

1. Gmail and iOS Don't Get Along

It probably goes without saying that Google's services tend to function better on Android devices -- Gmail can get more than a little screwy on iOS and other smartphone software.

Many users dislike the Gmail mobile app for iOS, since it doesn't have everything necessary to replace the native mail app. For example, in regular mail, users can't edit specific Gmail settings such as labels or vacation auto responses, forcing them to switch to the web version for access.

2. Drive Integration

Users often work with Google Docs and Spreadsheets in close conjunction with Gmail, which is why it would be useful if there were more integration between Drive and Mail -- or all apps, for that matter. For instance, in Gmail there are labels, but in Drive there are only folders, perhaps putting some projects at odds with others.

There's also the issue of formatting when converting files (such as PowerPoint presentations) to Google Drive, which can mess with the document's aesthetics.

3. Voice Mobile App Bugs

User have reported that the iPhone version of Google Voice often delays text delivery and freezes (which isn't necessarily Google's fault). The Android version, in contrast, seems to lack a speed dial interface and a call history that the iOS app has.

4. Google Analytics Sign-In

Analytics doesn't allow multiple sign-in, forcing a user to log other accounts out of apps in order to use the service.

5. Gmail Space Limit

Gmail has a hard data limit of 10GB for free users, who can pay to increase the bandwidth to 25GB, but there's no option to buy space greater than that. To keep your single email account in working order, you need to delete emails, which could prove problematic, depending on how long you've operated that particular account.

6. Reader's Design

The main gripe with Google Reader seems to be its lackluster design, prompting users to opt for alternatives such as NetVibes, Prismatic or the Flipboard mobile app.

Google actually simplified Reader's design last year after integrating Google+, but it leaves something to be desired.

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